Correlation Between E Data and Bosch Fren
Can any of the company-specific risk be diversified away by investing in both E Data and Bosch Fren at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining E Data and Bosch Fren into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Data Teknoloji Pazarlama and Bosch Fren Sistemleri, you can compare the effects of market volatilities on E Data and Bosch Fren and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in E Data with a short position of Bosch Fren. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Data and Bosch Fren.
Diversification Opportunities for E Data and Bosch Fren
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EDATA and Bosch is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama and Bosch Fren Sistemleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosch Fren Sistemleri and E Data is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on E Data Teknoloji Pazarlama are associated (or correlated) with Bosch Fren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosch Fren Sistemleri has no effect on the direction of E Data i.e., E Data and Bosch Fren go up and down completely randomly.
Pair Corralation between E Data and Bosch Fren
Assuming the 90 days trading horizon E Data is expected to generate 4.55 times less return on investment than Bosch Fren. But when comparing it to its historical volatility, E Data Teknoloji Pazarlama is 4.46 times less risky than Bosch Fren. It trades about 0.04 of its potential returns per unit of risk. Bosch Fren Sistemleri is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 42,923 in Bosch Fren Sistemleri on October 17, 2024 and sell it today you would earn a total of 23,427 from holding Bosch Fren Sistemleri or generate 54.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
E Data Teknoloji Pazarlama vs. Bosch Fren Sistemleri
Performance |
| Timeline |
| E Data Teknoloji |
| Bosch Fren Sistemleri |
E Data and Bosch Fren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Data and Bosch Fren
The main advantage of trading using opposite E Data and Bosch Fren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Data position performs unexpectedly, Bosch Fren can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bosch Fren will offset losses from the drop in Bosch Fren's long position.| E Data vs. Qnb Finansbank AS | E Data vs. KOC METALURJI | E Data vs. Cuhadaroglu Metal Sanayi | E Data vs. ICBC Turkey Bank |
| Bosch Fren vs. Koza Anadolu Metal | Bosch Fren vs. Sekerbank TAS | Bosch Fren vs. Akbank TAS | Bosch Fren vs. E Data Teknoloji Pazarlama |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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